A typical UK family is £13 per week worse off this year than last, according to the latest figures from the Asda Income Tracker.

Families are earning, on average, £11 more per week after tax than at this time last year. But the reversal of January discounts, coupled with some companies withdrawing VAT savings, left families’ essential goods costing £24 more each week – leaving families £13 worse off overall.

“The continued weakening of the labour market and spike in inflation have pushed the income tracker to a new low,” said Asda chief executive Andy Bond.

“The cost of living is being pushed back up, in part, by the largest depreciation in sterling’s value since the early 1970s, making imported goods more expensive, and by some retailers pushing prices back up again after their January sales.”

Bond added he expected lower commodity prices to filter through later in the year, but warned retailers “not to get hooked on short-term discounts”.